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Marshall was platted in 1872 when the railroad was extended to that point.[9] Lake Marshall Township had been established in the area two years earlier, and included a post office and several farms. Before that, the site was occasionally used as a campground for groups of Dakota, who hunted and traveled throughout the region. After much discussion, James J. Manton decided on Marshall in honor of Governor William R. Marshall.[10]

The town grew rapidly. In 1873, the first newspaper was published by Samuel Biglari, the Prairie Schooner. Biglari noted in the October 25, 1873, newspaper, "Nine months ago the first house was erected. Now there are 79 permanent buildings already constructed, and this number will be increased by others already planned." Marshall became an incorporated village in 1876, and a city on February 20, 1901. In April, 1874, the local paper estimated the population of Marshall at 300, by 1900 the population was 2,088. Holy Redeemer Catholic Church was built in 1884. The Weiner Memorial Hospital was built in 1950. Also during the 1950s, Marvin Schwan transformed his dairy into an ice cream home delivery service, which eventually grew into the Schwan Food Company.[11]

The flooding of the Redwood River historically had been a problem in Marshall. The city experienced a series of floods in the 1940s and 1950s. Diversion canals were constructed between 1961 and 1963, though occasional flooding still occurs, notably in 1993. Another project in 1997 removed 107,000 cubic meters (140,000 cubic yards) of sediment from the diversion channel. The diversion channel and Redwood River underwent major upstream and downstream improvements, which were completed in December 2000. During both the spring and fall of 2010, the Marshall area experienced unseasonably high amounts of moisture, yet the Redwood River remained within its banks through town.

Southwest Minnesota State University was founded in 1963 and opened its doors in 1967. Most of the campus was constructed between 1967 and 1973.

Marshall is at latitude 44.47N and longitude -95.78W, with an elevation of 354 meters (1,161 feet) above sea level. The city is 150 km (93 mi) northeast of Sioux Falls, South Dakota and 238 km (148 mi) southwest of Minneapolis. It is in the Central Standard time zone and has been assigned the ZIP code of 56258. According to the United States Census Bureau, the city has a total area of 10.08 square miles (26.11 km2), of which 10.07 square miles (26.08 km2) is land and 0.01 square miles (0.03 km2) is water.[1] It is located in a predominantly rural and agricultural area that was originally an expanse of northern tallgrass prairie. The flood plain of the Redwood River begins in Marshall.

U.S. Highway 59 and Minnesota State Highways 19, 23, and 68 are four of the main routes in the city. Greyhound Bus Lines provides intercity service.

The Southwest Minnesota Regional Airport-Marshall/Ryan Field is a municipal airport. The 2,200-meter (7,200-foot) runway can handle commercial airliners. Marshall is not currently served by scheduled air service, but charter flights are available.[12]

As of the census[2] of 2010, there were 13,680 people, 5,394 households, and 2,992 families residing in the city. The population density was 1,358.5 inhabitants per square mile (524.5/km2). There were 5,744 housing units at an average density of 570.4 per square mile (220.2/km2). The racial makeup of the city was 86.8% White, 4.0% African American, 0.6% Native American, 3.0% Asian, 3.6% from other races, and 2.0% from two or more races. Hispanic or Latino of any race were 7.8% of the population.

There were 5,394 households of which 29.2% had children under the age of 18 living with them, 43.3% were married couples living together, 9.0% had a female householder with no husband present, 3.2% had a male householder with no wife present, and 44.5% were non-families. 32.9% of all households were made up of individuals and 11% had someone living alone who was 65 years of age or older. The average household size was 2.36 and the average family size was 3.04.

The median age in the city was 29.7 years. 22.6% of residents were under the age of 18; 19.6% were between the ages of 18 and 24; 24.9% were from 25 to 44; 21.4% were from 45 to 64; and 11.4% were 65 years of age or older. The gender makeup of the city was 49.5% male and 50.5% female.

There were 4,914 households out of which 30.5% had children under the age of 18 living with them, 48.0% were married couples living together, 8.6% had a female householder with no husband present, and 40.7% were non-families. 30.4% of all households were made up of individuals and 12.1% had someone living alone who was 65 years of age or older. The average household size was 2.39 and the average family size was 3.04.

In the city the population was spread out with 23.9% under the age of 18, 19.1% from 18 to 24, 26.8% from 25 to 44, 17.7% from 45 to 64, and 12.4% who were 65 years of age or older. The median age was 30 years. For every 100 females there were 91.7 males. For every 100 females age 18 and over, there were 90.5 males.

The median income for a household in the city was $37,950, and the median income for a family was $52,284. Males had a median income of $35,478 versus $21,640 for females. The per capita income for the city was $18,588. About 7.8% of families and 12.4% of the population were below the poverty line, including 10.3% of those under age 18 and 16.7% of those age 65 or over.

The Schwan Food Company, headquartered in Marshall, is one of the largest frozen-food companies in the United States. It is a $3 billion dollar organization and is the third-largest privately held corporation in Minnesota after Cargill and Carlson. With approximately 14,000 employees in the United States, The Schwan Food Company has grown to become one of the largest producers of frozen pizza and egg rolls in the nation. The company is also known for its frozen desserts and premium ice cream manufacturing and distribution. Schwans employs approximately 1,500 people in Marshall.

One of Marshall's streets downtown, Marvin Schwan Memorial Drive, located between College Drive (Marshall's main through street) and A Street, is named after Marvin Schwan, the founder of the Schwan Food Company, who died in 1993. Prior to that time, it was called Depot Street.

A large corn wet-milling facility operated by Archer Daniels Midland Company is located in Marshall. This was formerly run by a farmer's cooperative, Minnesota Corn Processors, but it merged with ADM in 2002.[16] The plant employs 250 people.

Marshall has a mayor and city council that meet twice monthly. The city is divided into three wards, with two council members for each ward. The mayor and council members are elected for four year terms. The elected officials govern in coordination with a city administrator and city attorney. The major divisions of city hall are City Administration, Community Services, Economic Development, General Services, Public Safety, and Public Works.

Ruth Anderson, oldest living person in Minnesota until she died in late 2011. She was born in 1899.[18]

Bill Gullickson was born in Marshall in 1959. He was a Major League Baseball pitcher for the New York Yankees, among others. His daughter Carly Gullickson is a professional tennis player. She won the US Open in 2009 in the mixed doubles competition. Gullickson still has many family members who live in and around the Marshall area.

Pete Regnier, National Football League player, was born in Marshall in 1896.